Hi Safety,
Great points, however, CJ has announced to the public, hence market, via interview, that essentially the benchmark (lowest expectation) is an average of USD$100 per carat, and could be higher.
Regardless of the volume of inventory offered, the market will expect that the base figure for average $ per carat sold at auction will be USD$100 per carat minimum, and anything less will be a problem for the SP.
The auction total sales, therefore, taking the stated minimum average price per carat, will then only vary by the number of carats offered, if all rubies fit within the offered necessary quality range to get that price. An expected auction total revenue, is not the real measure of the quality of the rubies, but the average price per carat is.
Depends on what you wish to establish, quality supply or quantity. The higher average price per carat will always represent quality, when represented against quantity sold.
It will be interesting to see how MUS's first auction pans out, as there are many numbers, if you think about it, to juggle for a sensible result for everyone.
I am guessing, they have the supply to meet and exceed the average USD$100 per carat requirements across all parcels for tender at auction, to achieve the average price. I trust CJ really knows rubies. It is indeed a make or break event for MUS on many levels.
Cheers
gsmaree
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